New Home Source Blog

Housing Opportunity Index - Is it time to buy?

2009-05-29T12:27:30-05:00

Is it the right time to buy a home? Being on my 5th home, I am sincerely jealous of the youngsters considering their first home. Housing affordability was a huge issue in '06 & '07. It seems every market is hitting a high in affordability. Wells Fargo and the National Association of Home Builders (NAHB) developed the Housing Opportunity Index (HOI) 18 years ago. I measures affordability as the percentage of homes sold that families earning the median income in a market can afford to buy.

In 1Q09, the HOI has hit a record level of affordability and for first time home buyers, the government is throwing in another $8,000 in tax incentives. Oh, to be young. It's been a tough market for all home sellers, but none more so than home builders. Bad news for some, but good news for you. It means you can buy a new home with all the energy and warranty advantages of a new home without the premium normally going into new housing.

Let's look at some markets and just how the affordability pendulum swings. Also, be sure to check out the home builder deals and incentives on New Home Source. Let's look at 3 markets: Atlanta, Houston, and bustling Riverside, CA.

In Atlanta, always a great market for home buyers, in 3Q07 affordability dropped to under 64%. Now almost 83% of homes sold in Atlanta are affordable for the median income family. Check out some of the new home values in Atlanta.
Next, there's Houston where affordability in 3Q07 dropped to 47.4% and in 1Q09 it is back up to almost 72%. Again, the Houston builders are putting it all on sale.
Finally, at the height of the housing boom, less than 7% of the homes sold in Riverside were affordable for families earning the median income. Now, in the 1Q09, 72.6% of the homes are affordable.

...Wait. Riverside, CA is more affordable than Houston, TX? It's not a misprint. Just check out the new home bargains in Riverside. Not only that, but the state of California will kick in $10,000 on top of the $8,000 government first time buyer tax incentive.

If you need a home, now is a once in a lifetime opportunity to make the most of an incredible buyers market. Will it last? That government incentive? You must close by November 30th to get it.

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Blair Kuhnen

New Homes Starting at Just $7,945!

2009-05-08T16:41:44-05:00

Affordable housing just got a lot more affordable. Imagine your own cozy new home in a master planned community with its own hospital, school, post office, community hall, play ground and landscape garden. Okay, so cozy is a bit of an understatement, with homes in Tata's Nano Housing development measuring 283 square feet and the location being 61 miles away from Mumbai. Will Tata come to the U.S.? Probably not for a while. Read about Tata's Nano Housing launch here.

Now back to reality. The reality is that housing in the U.S. is suddenly quite affordable. In California, where affordability dropped to less than 15% in the boom, affordability is at an all time high. More Californians can afford a home than at any points since the California Association of Realtors started tracking housing affordability.

Now 61% of the population can now afford to own their own new homes in Sacramento. This same affordability can be seen in the prices of new homes in Riverside and San Bernardino. There, 56% of families can afford to buy. With the added $8,000 federal tax credit for first time home buyers and the $10,000 incentive from California, there really is no better time to buy.

Will you find a home for $7,945? Not likely, but you probably make more than the average call center rep in India ... and you probably want a little more space.

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Blair Kuhnen

Don't Kiss the Pig, Even if it's Wearing Lipstick

2009-04-27T19:16:52-05:00

If you spend any time online or watching television, you won't have to wait very long before someone says, "It's a buyer's market!" Housing has reached a historical level of affordability. First time home-buyers can take advantage of a huge $8,000 tax credit. And many realtors and home builders are desperate to get rid of their current inventory.

There's also the lure of buying one of the many foreclosed homes on the market. For a very cut-rate price, you can own a home. But don't be fooled by the lower-than-average purchase price. There could be hidden costs you haven't planned for.

I recently met with Chad Bria, West Coast Regional Sales Representative for Builder Homesite (www.builderhomesite.com), to discuss some of the issues related to buying foreclosed homes.

New Home Source: Chad, we've heard a lot of talk in the new about how inexpensive it is to buy a home nowadays, especially foreclosed homes. What's the risk with buying a foreclosure?

Chad Bria: The risk is that the seller doesn't really know anything about the house. Most foreclosures are sold at auction, with no opportunity to walk through the home; just exterior drive-by visuals. This tells you nothing about the plumbing.

NHS: Sure. But when you buy a foreclosure, you're often buying from a bank. Isn't there some sort of guaranteee?

CB: Since no one at the bank lived in the house, they probably don't know how old the roof is, if the basement leaks, if the furnace works, etc. When you buy a foreclosure, you are buying it as-is. No warranty.

NHS: What are some of the problems you've heard about with foreclosures?

CB: When a home sits empty for a while, it gets a little funky. Mold grows, rodents and insects move in, and vandals sometimes hit the house.

NHS: Well, these could be problems with other used homes on the market. How is a foreclosure any worse than any other home for sale on the market?

CB: Think of the mentality of someone being forced out of their home and what they might do to "get revenge" on the bank. Be prepared for missing or soiled floors, no appliances, holes in the walls, broken windows, etc. ... A good friend of mine owns an HVAC company. He was hired by a property management company to replace several compressors on the outside of homes. Someone had cut the lines to the houses and taken the outdoor AC units. The bank has to replace those units and the Freon, but do you think the bank is going to spend the money for a high-efficiency unit on a foreclosed home?"

NHS: I recently saw a news story about a man who was living in a foreclosed home, and the laws actually seemed to protect his right to be there. Is this a big problem for potential purchasers of foreclosures?

CB: In most states, if the house is occupied, you will have to evict the current residents following the local laws. This means that even after you buy the house, the people who were foreclosed on could be living there.

NHS: Wow. That's insane! What can you do in situations like that?

CB: To prevent them from causing damage to the house, you may consider paying them to move out. After all, it is much easier to pay $1,000 for someone to move out than to replace all the broken windows.

NHS: Are there any other hidden costs to consider when buying a foreclosure?

CB: The closing costs for buying a foreclosure are usually all put onto the buyer, and sometimes you can be responsible for interest and taxes as of the date the contract is signed, rather than the date of settlement.

NHS: Well, these are all very good points to consider. Thanks for taking the time to talk to me today!

Summary: Even for the amazingly low prices we're seeing nowadays, which have made home ownership on the West Coast less expensive than renting for the first time in recent memory, foreclosures seem to be very high risk. Like all high-risk investments, you should measure your tolerance for risk before jumping in head-first. Even if the bank has invested in the appearance of the house, you should expect to encounter hidden costs and be ready to assume responsibility for paying for them when they arise.

A better option for you may be to invest in one of the many new homes for sale. Many home builders have incredible incentives on their inventory homes. While the purchase prices aren't as low as foreclosures, you get the added value of peace of mind, with fully warranties and modern construction.

These New Home Deals are Hot!

2009-04-17T16:15:10-05:00

Today NewHomeSource launched its long-awaited "Hot Homes" designation for homes that are in high demand. New homes that fall into this category include last homes or last lots in a community, homes with exceptional locations (cul-de-sac, on the golf course, or near the water), extremely popular home plans, or homes with smoking hot deals.

This new "Hot Homes" designation will help consumers see deals they might have otherwise overlooked. They join the ever-popular "Special Offer" homes, which outline limited time incentives from homebuilders, as a way for homebuyers to find the best deals possible. Just click on the Hot Deals tab on any community results page to get a list of the hottest offerings available on NewHomeSource.

You'll find both "Hot Homes" and "Special Offers" on the Hot Deals tab.

You can also access Hot Homes directly from the major market pages. These special deals are listed down the left side of those pages. Just look for the flames.

So, what are you waiting for? Start your search for the hottest deals on new homes today by going to NewHomeSource.com and check out our new "Hot Homes" in your area!

Special Offers on New Homes in Dallas

2009-03-23T16:36:52-05:00

NewHomeSource has hand picked the BEST deals home builders are currently offering in the Dallas Area.

If you are looking for your dream home, now is the time! These specials change frequently and we want to make sure you don't miss out!

	Ryland Homes Bright Buy Sales Event!
March 12-31, take advantage of great offers including Designer Home Packages, up to $15,000 in value.

	Employee Pricing PLUS on Every Home.
Enjoy employee pricing on every David Weekley Home, and for a limited time enjoy exta incentives in the Dallas area.

	Why Rent? Own from $727 a month*.
Ask about our VALUE-PRICED homes, and 30-year FHA mortgage with a 2-1 interest buy down offer. Our incredible, limited-time mortgage rates are resulting in low-monthly payments only for The Chateaux of Allen homebuyers*. This unique opportunity is only available until March 31st!

	Green Tag Sales Event!
For a limited time, receive extra incentives during our GREEN TAG Sales Event. Enjoy an Eco Smart Home from Plantation Homes.

	$5,000 shopping spree!
Visit us today to learn more about our new job loss protection program. And between now and March 31, 2009 register for a $5,000 shopping spree!


Are you a builder interested in featuring your Hot Home or Special Offer? Contact Thane Tennison at ttennison@builderhomesite.com or call (866) 651-8866 for more details.
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Great Weekly Deals by NewHomeSource - 2/23

2009-02-23T16:43:50-06:00

Introducing NewHomeSource's Great Deals e-mail program. Sign-up today to receive a list of current deals on new homes by the top homebuilders in the nation.

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NewHomeSource has hand picked the BEST deals home builders are currently offering in Sacramento.

If you are looking for your dream home, now is the time! These specials change frequently and we want to make sure you don't miss out!

	Pulte Homes - Let's Get a Move On Sales Event!
For three days only Pulte Homes is offering spectacular savings at most all of our neighborhoods across the nation. Get a 3.999%APR!

	Models for Sale at Woodbury Estates – and EVERYTHING is included
Five model homes are for sale at Elliott Homes Woodbury Estates in Galt, and everything is included. From custom, professionally decorated interiors, to lush landscaping with patios and fountains to beautiful designer furniture, these homes have it all.

	1% Savings
Save up to 1% off the purchase of a new home. Contact us today for details!

	Down Payment Assistance
Meritage can help you with up to 3% down - contact us for more information today!

	Zero-risk price guarantee!
Condominiums priced from low 200,000’s now available with the industry’s first life of the project price guarantee.Homes include enclosed garages, some with yards. Immediate move-in available at most communities.


Are you a builder interested in featuring your Hot Home or Special Offer? Contact Thane Tennison at ttennison@builderhomesite.com or call (866) 651-8866 for more details.
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Capitol Hill Offers One More Reason to Buy New

2009-02-19T19:15:19-06:00

Economic woes aside, you have to admit that now is the best time in modern history to buy a new home. When homebuilders are desperate to offload inventory or start new building projects, you're not only guaranteed to get an incredible deal, but you'll also be working with builders who use the most advanced construction techniques and the greenest materials to build the most resource- and energy-efficient homes in history.

Adding to the already prime buyer's market, the federal government announced a First Time Home Buyer Tax Credit of up to $8,000. And, unlike prior tax credit programs by the US Government, this credit does not have to be repaid. Here are the general guidelines for qualifying:

Your home must be purchased between January 1, 2009 and December 31, 2009.
The home must be your primary residence.
You’re a single taxpayer with an income of $75,000 or less, or ...
You’re a married taxpayer with a combined income of $150,000 or less.

The tax credit is for 10% of your home's purchase price, but it can only be a maximum of $8,000. Other aspects of the stimulus package promise to help unfreeze the credit markets, making it even easier to buy a new home. So what are you waiting for?

To find your dream home, check out the more than 8,000 communities on NewHomeSource.com.

You can find special offers by clicking on the Special Offers tab on the market and community results pages.

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Keith Goode is the Search Engine Marketing Manager for Builder Homesite Inc. and can be reached at kgoode@builderhomesite.com

New Home Red Tape Goes Green

2009-02-04T19:07:01-06:00

As energy costs rise, California and various localities throughout the state are actively encouraging energy efficient construction through legislation. If you’re building a new green home, these new rules might save you some green as well.

Last year, San Francisco, Los Angeles, Monterey and other counties enacted new green building policies. These guidelines and others around the state either mandate increased energy efficiency or offer incentives for builders to go green. Studies prove that green buildings also benefit their new owners: New green homes not only save home owners money in energy costs, but have higher resale values, rental rates, and occupancy rates than their conventional counterparts.

Many new regulations utilize the U.S. Green Building Council's Leadership in Energy and Environmental Design (LEED) standards. These guidelines not only promote energy efficient construction practices, but also take into account factors such as proximity to public transportation, use of renewable energy, and the environmental impact of construction materials.

In localities mandating green building, only homes built after the enactment of green-building legislation are guaranteed to have these cost-saving features. In these tough economic times, going green with your new home is quickly becoming a win-win scenario.

If you have any questions regarding the impact of this legislation on you and your new home, please contact your builder or a real estate attorney in your city.

NewHomeSource on YouTube

2009-02-02T12:45:35-06:00

If you're looking for top-quality videos about new homes and the many reasons for buying new instead of used, check out New Home Source's YouTube Channel. We provide some of the highest quality video productions in the new home industry, thanks to our partners over at BHI Media.

User Poll: What's Keeping You From Buying Now

2009-01-30T12:01:15-06:00

Recently, the US House of Representatives approved a stimulus package that would provide a $7500 tax credit to new home buyers. This occurs amidst incredibly low interest rates and falling house prices.

So, with all of these incentives for buying a new home, what is keeping you from buying now? Answer our user poll below:

With all of the incentives out there for buying a home, why aren't you buying a new home? ( polls)